Loan to Mecham Firm Not Smart, His Lawyer Says

A prosecutor told the Arizona Senate on Tuesday that Gov. Evan Mecham’s $80,000 loan from a protocol fund to his car dealership was an “intentional and wrongful act,” and the defense acknowledged that it was “not politically smart.”

The statements came as the Senate turned to the second of three charges lodged against Mecham at his impeachment trial--misusing state funds.

Earlier, the senators debated whether to consider the first-term Republican’s expulsion on the first charge of obstruction of justice. They decided, however, to hear evidence on all three charges before voting.

The first charge alleges that Mecham obstructed justice by trying to thwart an investigation into an alleged death threat. The final testimony on that charge was heard Tuesday.

The second count alleges that Mecham broke the law by lending $80,000 from a protocol fund to his Mecham Pontiac dealership. The prosecution contends that the fund was state money but the defense contends that it was private. Mecham also is charged with concealing a $350,000 campaign loan.

In an opening statement Tuesday on the second charge, House prosecutor William French told senators: “The $80,000 loan to Mecham Pontiac was wrong.” French recounted the history of the charge, which dates from an inaugural ball that raised $92,000 to reduce Mecham’s campaign debt.

Defense attorney Jerris Leonard responded that the loan broke no law. “It was not politically smart, there’s no question about that,” Leonard said. “ . . . But I think the evidence will establish it certainly wasn’t evil.”

Later, Mecham’s former chief of staff, Jim Colter, who signed the $80,000 check, testified that Mecham asked him not to record a document securing the loan. Colter did not say why Mecham would not have wanted it recorded.